CICTAR Urges Australia to End $5.5 Billion Privatized Job System as Report Says Workers Lose
Updated
Updated · ABC News · Jul 21
CICTAR Urges Australia to End $5.5 Billion Privatized Job System as Report Says Workers Lose
1 articles · Updated · ABC News · Jul 21
Summary
A new CICTAR report says Australia’s outsourced employment-services model should be returned to the public sector, arguing the system fails jobseekers while channeling taxpayer money to private equity firms and wealthy owners.
AusTender data cited in the report shows $5.5 billion in contracts spread across 45 providers, with nine for-profit firms holding $2.1 billion and APM alone controlling 23 licences worth $590.7 million.
Four case studies covering $1.24 billion in contracts point to opaque ownership, offshore related-party payments, dividend payouts and tax-minimisation practices that the report says undermine transparency and value for money.
The report recommends banning political donations by major government contractors, tightening disclosure rules for providers receiving more than $10 million, and barring firms screened out in one care sector from winning contracts in others.
The findings land after the Albanese government promised its biggest employment-services overhaul in 30 years, but CICTAR argues for-profit providers should be excluded from the redesigned system.
Could a public sector takeover of job services truly fix the system and save billions?
Is Australia's $5.5B jobs system a pipeline for enriching millionaires through legal tax loopholes?
If private providers are failing, why does the government's 'biggest shake-up' still rely on them?
Overhauling Australia’s $3 Billion Employment Services: Why Privatization Failed and What Must Change
Overview
Australia’s privatised employment services system is under intense scrutiny for failing jobseekers. Critics argue that too much money and effort go into compliance activities instead of real help, with billions spent on programs that often do little good. Private equity-controlled companies dominate the sector, holding major contracts not only in employment services but also in aged and disability care, leading to significant private wealth. This concentration of power and focus on profit has sparked calls for a major overhaul, as the current system is seen as prioritising business interests over genuine support for unemployed Australians.